Indian Renewable Energy Development Agency Limited (NSE: IREDA) announced on 29 August that its board of directors has given in-principle approval to the plan to raise Rs 4500 crore.
The company said in the information sent to the stock market that in the meeting of IREDA held on 29 August, the board of directors approved raising funds through equity capital.
According to the plan, up to Rs 4500 crore will be raised through FPI, QIP, rights issue, preferential issue, or any such route or in more than one way.
The company said that the decision on how much equity will be issued under this scheme will be taken later.
The company released this information after the market closed, and the effect of this news can be seen on the stock in the next session.
In Thursday’s trading, IREDA’s stock closed at 255 with a gain of 0.3 percent, IREDA’s IPO came in November last year. The price band for the stock was kept from 30 to 32. The stock has seen a sharp jump with its listing.
The stock’s highest level of the year is 310. On Wednesday’s trading, the stock closed at 255. That is, investors who got the stock in the issue are still getting a bumper return of 696 percent.
However, those who invested at higher levels are currently at a loss of 17 percent. The stock recently fell below the level of 240.
In a conversation with a TV news, a top market expert said that consolidation is being seen in IREDA’s stock and the level of 235 is important for the stock. If the stock remains above this level, then it can once again see an upward trend.
Quick Fact
| Company name | IREDA |
|---|---|
| Fundraising plan | ₹4500 crore |
| Approval status | In-principle approved |
| Fundraising method | FPI, QIP, rights issue, preferential issue, multiple routes |
| Stock price on 29 Aug | ₹255 |
| IPO price band | ₹30 – ₹32 |
| Highest stock level | ₹310 |
| Current stock return from IPO | 696% |
| Market expert’s view | Consolidation seen |
| Important level | ₹235 |
| Potential upward trend | If above ₹235 |
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